Sponsored by:
Senator KRISTIN M. CORRADO
District 40 (Bergen, Essex, Morris and Passaic)
SYNOPSIS
Establishes grant program in EDA for certain commercial landlords; makes appropriation.
CURRENT VERSION OF TEXT
As introduced.
An Act establishing a grant program for commercial landlords and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. There is appropriated from the General Fund to the New Jersey Economic Development Authority the sum of $30 million from federal funds allocated to the State in federal relief efforts, to the extent those funds are available. The authority shall use the funds to provide financial support, by way of grants, to commercial landlords.
b. The authority shall establish a program to provide grants to commercial landlords on the basis of income lost due to nonpayment of rent by commercial tenants. The authority shall establish an application process for grants for affected commercial landlords.
c. The authority shall adopt rules and regulations pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the purposes of this act.
2. This act shall take effect immediately, and shall expire 30 days following the termination of the order of the Supreme Court of New Jersey on suspension of commercial landlord/tenant trials, or after the funds appropriated pursuant to this act are exhausted.
STATEMENT
This bill appropriates from the General Fund to the New Jersey Economic Development Authority the sum of $30 million from federal funds allocated to the State in federal relief efforts, to the extent those funds are available. The bill requires the authority to use the funds to provide financial support, by way of grants, to commercial landlords. The bill provides that the grants are to be awarded to commercial landlords on the basis of income lost due to nonpayment of rent by commercial tenants. The authority is to establish an application process for grants for affected commercial landlords.
The bill is a response to the February 5, 2021 order of the Supreme Court of New Jersey, which suspended commercial landlord/tenant trials, except in limited, emergency circumstances. This order effectively barred most commercial landlords in the State from seeking redress against tenants who have not paid their rent. Most commercial landlords cannot currently use the judicial process to recover lost rent, or evict tenants that fail to pay rent. This bill seeks to provide these landlords with funds to help them make up for lost income.